Insurance plan

Directors Review, Township of OK Insurance Plan – InsuranceNewsNet

Sumpter Township Members board of directors approved the new municipal civil liability insurance contract during the March 22 meeting following a detailed presentation by John Johnson of Burnham Flower Insurance.

The annual premium of $118,041 includes several provisions for damage and loss of township property as well as liability coverage. Johnson explained that because the township has been a member of the Michigan Township Participation Plan or PAR “for a few years,” several benefits and grants are available under the policy. He explained that the township received a total of $37,000 dividend yields and that a yield is still expected this year although the amount has not yet been calculated.

Johnson also urged the township to take advantage of return-on-risk grants offered by the insurer. He said the township has already received two grants to $5,000 each and that the funding criteria have been expanded to include a “wide variety of things that can be approved”, including generators and training.

“Police, fire or EMS training may be covered and is potentially eligible for these grant funds,” he told administrators. Last fall, he said, there were about 90 applications or grants and almost 70 of them were approved, and “we are now offering reimbursement for professional certifications.”

There have been very few changes to policy coverage, Johnson explained, although the policy includes an assessment update for item replacement and a “3-4% inflation endorsement.” . He told council that the insurer “is working with Esther (township clerk Esther Hurst) constantly” to ensure accurate property records for coverage. “It’s an intention to keep up with inflation,” he added.

Curator Don La Porte asked Johnson to clarify that the $2.6 million evaluation at fire station number one with a $89,000 content value did not include fire equipment. Johnson said it pertained to the building and various items such as building furnishings, but did not include fire engines or actual equipment used to fight a fire that was covered under another policy.

Curator Matt Oddy questioned about the township’s liability for employees cutting weeds and vegetation on Wayne County property, which administrators agreed to do to allow visibility of traffic signs and other vehicles and several intersections in the township.

“If township employees are in the county easement without county permission, who is responsible if there are injuries,” he asked.

Township lawyer Rob Young suggested that the township send a notification to the county that intersection weed clearing will be provided for the purpose of seeking approval for easement access. This would ensure the viability of the liability coverage he and Johnson agreed to.

The new policy has come into effect April 1.